Homework Answers
| Sale as Scrap | Rework | |
| Sale of scrap units | 56000 | |
| Sale of reworked units | 140800 | |
| Cost to rework units | -75200 | |
| Incremental income(loss) | 56000 | 65600 |
| The company should | Rework | |
| Workings: | ||
| Sale as Scrap | Rework | |
| Sale of scrap units | =16000*3.50 | |
| Sale of reworked units | =16000*8.80 | |
| Cost to rework units | =16000*4.70 |
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A company with excess capacity must decide between scrapping or reworking units that do not pass...
A company with excess capacity must decide between scrapping or reworking units that do not pass...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.90 per unit to manufacture. The units can be a) sold as is for $2.90 each, or b) reworked for $4.60 each and then sold for the full price of $8.80 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
A company with excess capacity must decide between scrapping or reworking units that do not pass...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 10,000 defective units that cost $5.40 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $5.00 each and then sold for the full price of $8.90 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
A company with excess capacity must decide between scrapping or reworking units that do not pass...
A company with excess capacity must decide between scrapping or reworking units that do not pass Inspection. The company has 13,000 defective units that cost $5.60 per unit to manufacture. The units can be a) sold as Is for $2.70 each, or b) reworked for $4 60 each and then sold for the full price of $8.30 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the...
A company with excess capacity must decide between scrapping or reworking units that do not pass...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $5.90 per unit to manufacture. The units can be a) sold as is for $3.10 each, or b) reworked for $4.70 each and then sold for the full price of $9.00 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
A company must decide between scrapping or reworking units that do not pass inspection. The company...
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.10 per unit to manufacture. The units can be sold as is for $3.10 each, or they can be reworked for $4.50 each and then sold for the full price of $8.20 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.10 each, and sell...
A company must decide between scrapping or reworking units that do not pass inspection. The company...
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.40 per unit to manufacture. The units can be sold as is for $2.80 each, or they can be reworked for $4.50 each and then sold for the full price of $8.20 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.40 each, and sell...
Chap 23 Homework A company with excess capacity must decide between scrapping or reworking units that...
Chap 23 Homework A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $6.10 per unit to manufacture. The units can be a) sold as is for $2.50 each, or b) reworked for $4.90 each and then sold for the full price of $8.60 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company...
PLEASE DO PROBLEM A company must decide between scrapping or reworking units that do not pass...
PLEASE DO PROBLEM A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.10 per unit to manufacture. The units can be sold as is for $3.00 each, or they can be reworked for $5.00 each and then sold for the full price of $8.10 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.10...
A company must decide between scrapping or reworking units that do not pass inspection. The company...
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $6.10 per unit to manufacture. The units can be sold as is for $3.20 each, or they can be reworked for $4.60 each and then sold for the full price of $9.30 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $6.10 each, and sell...
A company must decide between scrapping or reworking units that do not pass Inspection. The company...
A company must decide between scrapping or reworking units that do not pass Inspection. The company has 13.000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $3.40 each, or they can be reworked for $4.70 each and then sold for the full price of $9.40 each. If the units are sold as is, the company will be able to build 13,000 replacement units at a cost of $6.00 each, and sell...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.90 per unit to manufacture. The units can be a) sold as is for $2.90 each, or b) reworked for $4.60 each and then sold for the full price of $8.80 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 10,000 defective units that cost $5.40 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $5.00 each and then sold for the full price of $8.90 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
A company with excess capacity must decide between scrapping or reworking units that do not pass Inspection. The company has 13,000 defective units that cost $5.60 per unit to manufacture. The units can be a) sold as Is for $2.70 each, or b) reworked for $4 60 each and then sold for the full price of $8.30 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the...
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $5.90 per unit to manufacture. The units can be a) sold as is for $3.10 each, or b) reworked for $4.70 each and then sold for the full price of $9.00 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units...
A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.10 per unit to manufacture. The units can be sold as is for $3.10 each, or they can be reworked for $4.50 each and then sold for the full price of $8.20 each. If the units are sold as is, the company will be able to build 16,000 replacement units at a cost of $5.10 each, and sell...
Chap 23 Homework A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $6.10 per unit to manufacture. The units can be a) sold as is for $2.50 each, or b) reworked for $4.90 each and then sold for the full price of $8.60 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company...
A company must decide between scrapping or reworking units that do not pass Inspection. The company has 13.000 defective units that cost $6.00 per unit to manufacture. The units can be sold as is for $3.40 each, or they can be reworked for $4.70 each and then sold for the full price of $9.40 each. If the units are sold as is, the company will be able to build 13,000 replacement units at a cost of $6.00 each, and sell...
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